By Richard Menta 4/14/05
It looks like the iPod train continues to roll along as the shiny white digital music player blows past Wall Street's sales expectations. In their earnings report yesterday Apple announced that they sold 5.31 million units. This is nearly double the 2.9 million players Apple predicted they would sell in January and well past the 4.5 million analysts were expecting just before the announcement.
The 5.3 million figure also handily outstrips the 4.6 million units sold in the last quarter (the Christmas quarter) demonstrating how significant this sales growth is. Much of this success can be given to the iPod Shuffle, which brought the price of the least expensive iPod down from $250 to only $99.
Apple also doubled its sales of Macs from the previous year, due partially to the introduction of the Mac mini. With the release of the Tiger operating system the end of April, Apple's computers will steer more into the direction of media boxes that will complement and continue its success in the digital music arena.
Tiger also may be the linchpin that by the Christmas 2005 season will bring us the (Gasp!) iPod Video.
The iPod Shuffle is available on Amazon
Below is Apple's press release for those who want further detail:
CUPERTINO, CaliforniaApril 13, 2005Apple® today announced financial results for its fiscal 2005 second quarter ended March 26, 2005. For the quarter, the Company posted a net profit of $290 million, or $.34 per diluted share. These results compare to a net profit of $46 million, or $.06 per diluted share, in the year-ago quarter. Revenue for the quarter was $3.24 billion, up 70 percent from the year-ago quarter. Gross margin was 29.8 percent, up from 27.8 percent in the year-ago quarter. International sales accounted for 40 percent of the quarters revenue.
Apple shipped 1,070,000 Macintosh® units and 5,311,000 iPods during the quarter, representing a 43 percent increase in CPU units and a 558 percent increase in iPods over the year-ago quarter.
We are delighted to report a record second quarter for Apple in both revenue and earnings, said Steve Jobs, Apples CEO. Apple is firing on all cylinders and we have some incredible new products in the pipeline for the coming year, starting with Mac OS X Tiger later this month.
Were very pleased to report 70 percent revenue growth and a 530 percent increase in net income, said Peter Oppenheimer, Apples CFO. Looking ahead to the third quarter of fiscal 2005, we expect revenue of about $3.25 billion and earnings per diluted share of about $.28.
Apple will provide live streaming of its Q2 2005 financial results conference call utilizing QuickTime, Apples standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT on Wednesday, April 13, 2005 at http://www.apple.com/quicktime/qtv/earningsq205/ and will also be available for replay. The QuickTime player is available free for Macintosh and Windows users at www.apple.com/quicktime.
This press release contains forward-looking statements about future products and the Companys estimated revenue and earnings for the third quarter of fiscal 2005. These statements involve risks and uncertainties and actual results may differ. Potential risks and uncertainties include continued competitive pressures in the marketplace; the effect competitive and economic factors and the Companys reaction to them may have on consumer and business buying decisions with respect to the Companys products; the ability of the Company to make timely delivery of new programs, products and successful technological innovations to the marketplace; the continued availability of certain components and services essential to the Companys business currently obtained by the Company from sole or limited sources, including the timely resolution of manufacturing issues associated with the G5 microprocessors used in many of the Companys Macintosh systems; possible disruption in commercial activities caused by terrorist activity and armed conflict, such as changes in logistics and security arrangements, and reduced end-user purchases relative to expectations; possible disruption in commercial activity as a result of natural disasters or major health concerns including epidemics; risks associated with the Companys retail initiative including significant investment cost, uncertain consumer acceptance and potential impact on existing reseller relationships; the effect that the Companys dependency on manufacturing and logistics services provided by third-parties may have on the quality, quantity or cost of products manufactured or services rendered; the Companys reliance on the availability of third-party music content, and the ability of the Company to successfully evolve its operating system and attract sufficient Macintosh developers. More information on potential factors that could affect the Companys financial results is included from time to time in the Companys public reports filed with the SEC, including the Companys Form 10-K for the fiscal year ended September 25, 2004, the Companys Form 10-Q for the quarter ended December 25, 2004 and the Companys Form 10-Q for the quarter ended March 26, 2005 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, and iLife and professional applications. Apple is also spearheading the digital music revolution with its iPod portable music players and iTunes online music store.
The U2 iPod is available on Amazon
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